Acerus Pharmaceuticals (OTCMKTS:TRLPF – Get Free Report) and Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for Acerus Pharmaceuticals and Rhythm Pharmaceuticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acerus Pharmaceuticals | 0 | 0 | 0 | 0 | 0.00 |
| Rhythm Pharmaceuticals | 0 | 0 | 13 | 0 | 3.00 |
Rhythm Pharmaceuticals has a consensus target price of $74.92, suggesting a potential upside of 21.35%. Given Rhythm Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Rhythm Pharmaceuticals is more favorable than Acerus Pharmaceuticals.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acerus Pharmaceuticals | $7.38 million | 7.71 | -$18.79 million | ($0.08) | -2.75 |
| Rhythm Pharmaceuticals | $130.13 million | 30.00 | -$184.68 million | ($4.35) | -14.19 |
Acerus Pharmaceuticals has higher earnings, but lower revenue than Rhythm Pharmaceuticals. Rhythm Pharmaceuticals is trading at a lower price-to-earnings ratio than Acerus Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.0% of Acerus Pharmaceuticals shares are owned by institutional investors. 5.6% of Rhythm Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Acerus Pharmaceuticals and Rhythm Pharmaceuticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acerus Pharmaceuticals | -254.66% | -346.72% | -94.54% |
| Rhythm Pharmaceuticals | -230.07% | -367.36% | -77.47% |
Volatility & Risk
Acerus Pharmaceuticals has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, Rhythm Pharmaceuticals has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500.
Summary
Rhythm Pharmaceuticals beats Acerus Pharmaceuticals on 8 of the 14 factors compared between the two stocks.
About Acerus Pharmaceuticals
Acerus Pharmaceuticals Corporation, a specialty pharmaceutical company, focuses on the development, manufacture, marketing, and distribution of pharmaceutical products for men's and women's health. The company offers Natesto, a nasal gel for testosterone replacement therapy in adult males diagnosed with hypogonadism; Estrace, an oral tablet for the symptomatic relief of menopausal symptoms; and UriVarx, a natural health product that helps reduce symptoms of hyperactive bladder, such as daytime urinary frequency, urgency, and nocturia. It also engages in developing Lidbree, a short acting lidocaine formulation delivered through a proprietary device into the vaginal mucosal tissue; Stendra, a PDE5 inhibitor for the treatment of erectile dysfunction; Elegant vaginal moisturizer, which provides comfort to women suffering from vaginal dryness; and Elegant pH, a pH balanced vaginal product; Gynoflor, an ultra-low dose vaginal estrogen combined with a probiotic for the treatment of vaginal atrophy, restoration of vaginal flora, and treatment of certain vaginal infections; and Tefina, a clinical stage product for women with female sexual dysfunction. Acerus Pharmaceuticals Corporation sells products through its salesforce in Canada; and through a network of licensed distributors in the United States and internationally. The company was formerly known as Trimel Pharmaceuticals Corporation and changed its name to Acerus Pharmaceuticals Corporation in September 2015. Acerus Pharmaceuticals Corporation was founded in 2008 and is headquartered in Mississauga, Canada.
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is in Phase 3 clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, and other MC4R disorders. The company has licensing agreements with LG Chem, Ltd; Ipsen Pharma S.A.S; Camurus; RareStone Group Ltd.; and LG Chem, Ltd. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
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